Marathon Petroleum Takes Bailout Tax Breaks During Pandemic
By Sarah Thomas and Nathan Heffernan
Fossil fuel companies have reaped millions of dollars in benefits from a stimulus package intended to help struggling Americans and the economy. Among these is Marathon Petroleum, the largest oil refiner in the country, which has a history of air pollution violations impacting low-income and Black and Brown communities.
Oil Companies Receiving Bailout Money
The CARES Act included several provisions to support businesses, one of which allowed companies to claim an immediate tax refund by deducting current operating losses from income taxes paid in the past five years. As a result of changes to allow the "carryback" of net operating losses, Marathon received $411 million in tax benefits, a sum even greater than their recent $334 million penalty for environmental violations. The Federal Reserve also included Marathon Petroleum in its recent purchase of energy bonds.
Oil and gas companies, like Marathon, are not violating any rules by claiming this tax benefit, but there are significant downsides to using public resources to prop up dirty companies with a history of air pollution violations in the midst of a pandemic that targets the respiratory system. As part of the paycheck protection program, a separate program under the CARES Act, at least $3 billion in taxpayer dollars intended for small businesses have gone to over 5,600 U.S. fossil fuel companies and are being used to save an antiquated industry, rather than investing in a sustainable future that will benefit all Americans.
Democratic lawmakers have warned that this oil bailout is not only taking the funds meant for smaller businesses, but is also forcing taxpayers to pay for the industry's past mistakes. Senators Brian Schatz and Sheldon Whitehouse wrote that the pandemic "was not the source of the oil and gas industry's dire financial condition," and that this bailout "poses both a credit risk and a more profound climate transition risk to taxpayers."
Marathon Petroleum is just one example of an oil company that was already struggling prior to the COVID-19 outbreak, partly due to their expensive 2018 acquisition of rival refiner Andeavor. Oil companies have been pursuing such mergers in an attempt to generate investor excitement and make up for the structural weaknesses of the oil sector. More specifically, upstream companies have spent billions more on drilling than they receive from selling the produced oil and gas, which creates a condition known as negative free cash flow. Investing in oil stock has had a similarly negative trajectory, as the average U.S. oil producer over the past three years has produced a total return of negative 17%.
A History of Environmental Racism
The acquisition of Andeavor and other refineries has made Marathon Petroleum the largest refiner in the U.S. with a long list of costly penalties. All told, Marathon and its acquired companies have been fined more than $1.4 billion in environmental, consumer protection and workplace violations since 2000. A significant recent example was its $334 million settlement with the EPA in 2016 to reduce air pollutants in five states: Michigan, Louisiana, Ohio, Kentucky, and Illinois. The EPA announced that the required investments in air pollution controls would "help reduce emissions that can cause respiratory and cardiovascular health impacts, which can disproportionately affect low-income and vulnerable populations."
Many of Marathon's refineries have notably high indicators for Environmental Justice Indexes, signifying high levels of air pollution among minority and at-risk groups. For the 1-mile radius surrounding the Detroit, Michigan refinery, the surrounding communities score above the state 90th percentile for diesel particulate matter, air toxics cancer risk, and respiratory hazard index. The Canton, Ohio refinery additionally scores around the 75th percentile in these indexes. The Garyville, Louisiana refinery — located in Louisiana's infamous "Cancer Alley" — scores in the 99th percentile country-wide for air toxics cancer risk. The Political Economy Research Institute lists Marathon as the 33rd worst air polluter in the nation, with an Environmental Justice Minority Share of 59%, meaning that its refineries disproportionately impact communities of color.
Despite the 2016 EPA settlement, communities living nearby to the refineries continue to face environmental injustices and deadly air pollution. In Southwest Detroit, the predominantly Black zip code 48217, the most polluted area in Michigan, is home to dozens of polluting facilities, including the Marathon Petroleum refinery. This residential area experiences higher rates of asthma and cancer than the rest of the country due to toxic pollution. Community organizers and environmental justice groups have protested the Marathon refinery over the past decade, calling for accountability from the oil giant and buy-outs for their now devalued property.
In September 2019, an alleged vapor leak sparked further protests as Marathon failed to inform residents of the dangers and health impacts of chemicals released. Prior to the September incident, an earlier vapor release in February of 2019 caused residents to complain of "a nauseating stench" and of "vomiting, troubled or labored breathing, and irritated eyes and throats" reported the Metro Times. The September incident prompted U.S. Rep. Rashida Tlaib and the U.S. House Committee on Oversight and Reform in February 2020 to request that the EPA undertake a formal investigation of the chemical leak by Marathon. The facility is the only oil refinery in Michigan, and as Metro Times reports "emits 29 different types of toxins, which waft across neighborhoods and puts residents at an elevated risk of cancer, respiratory disease, asthma, and liver failure."
The impacts on nearby communities does not stop at environmental health. Marathon and its affiliates have also racked up nearly $40 million in penalties for workplace safety or health violations, according to the Violationtracker website.
Lobbying Against Common-Sense Solutions
The CARES Act bailout to Marathon Petroleum, a significant air polluter, is further concerning given the lobbying ties the fossil fuel giant has with the Trump administration. In May 2020, the House Oversight Committee requested documents from Marathon Petroleum related to its extensive lobbying efforts related to Trump's rollback of fuel economy standards — a rule change that has already been mired in scandal. In 2018, Gary Heminger, Marathon's former CEO, told investors the new rule would help sell up to 400,000 more barrels of oil a day. The investigation seeks documents detailing meetings with top officials at the EPA and the Department of Transportation.
While the CARES Act is necessary for stimulating the economy during this crisis, large hand-outs to notorious air polluters must be scrutinized. Air pollution exposure has been linked to increasing incidence and severity of several respiratory infections that are similar to COVID-19. Residential areas surrounding oil refineries such as Marathon Petroleum are often predominantly Black communities, which are already affected disproportionately by the pandemic. The bailout money towards Marathon Petroleum maintains oil refineries that pollute surrounding communities, worsening the health and economic impacts of the Covid pandemic.
Our recovery from this crisis shouldn't worsen existing public health problems or lock us into higher greenhouse gas emissions. We need a green and just recovery that puts us on a path to the sustainable future we need.
Reposted with permission from Greenpeace.
By Anne-Sophie Brändlin
1. My Octopus Teacher (2020)<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="43d618cfe4dea9f32fdb2880868a6f5f"><iframe lazy-loadable="true" src="https://www.youtube.com/embed/3s0LTDhqe5A?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span><p>No person has ever gotten as <a href="https://www.ecowatch.com/my-octopus-teacher-movie-2647785692.html">close and intimate with a wild octopus</a> as South African filmmaker Craig Foster, who decided to head out to an underwater kelp forest in the Atlantic Ocean every day for an entire year to capture the life of the mesmerizing creature. An unusual, touching friendship develops that will likely change the way you see your relationship to animals and the planet.</p>
2. David Attenborough: A Life On Our Planet (2020)<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="bab38965d072e9023c9c36b1ccf622c9"><iframe lazy-loadable="true" src="https://www.youtube.com/embed/64R2MYUt394?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span><p><a href="https://www.ecowatch.com/tag/David-Attenborough">David Attenborough</a> is the godfather of environmental docs. In his 94 years, the Briton has visited every corner of the world, documenting nature in all its variety and wonder. His latest film is a witness statement, in which he reflects upon the devastating changes he's seen in his lifetime. He also gives a vision of the future in which we work with nature, rather than against it.</p>
3. The Human Element (2019)<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="f426ed5154f3133a6f8cb5d8d39cf211"><iframe lazy-loadable="true" src="https://www.youtube.com/embed/k34FhplukXQ?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span><p>This doc follows environmental photographer James Balog on his quest to portray Americans on the frontlines of climate change whose lives and livelihoods have been affected by the collision between people and nature. Balog captures how the four elements of earth, water, air and fire are being transformed by a fifth element — the human element — and what that means for our future.</p>
4. Before the Flood (2016)<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="619d7c35d25e9cfc6e239bc1bd7d1ea2"><iframe lazy-loadable="true" src="https://www.youtube.com/embed/D9xFFyUOpXo?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span><p>In <a href="https://www.ecowatch.com/leonardo-dicaprio-before-the-flood-2057070140.html">this doc</a>, actor Leonardo DiCaprio teams up with National Geographic to travel the globe and witness the effects of global warming that are already visible, such as rising sea levels and deforestation. Featuring prominent figures such as Barack Obama, Ban Ki-moon, Pope Francis and Elon Musk, the doc offers solutions for a sustainable future and shows how we can challenge climate change deniers.</p>
5. Tomorrow (2015)<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="8fdcf7de6bd422b6ab96134ce49366d9"><iframe lazy-loadable="true" src="https://www.youtube.com/embed/NUN0QxRB7e0?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span><p>Need an optimistic view on how to tackle the climate crisis? Then this upbeat French doc seeking out creative alternatives to our current form of agriculture, energy supply and waste management is for you. It introduces everyday sustainability innovators from across the world, such as urban gardeners and renewable energy enthusiasts, to inspire the rest of us to make local changes</p>
6. Racing Extinction (2015)<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="6ec29ed8282004cb6ccc6e0eae7de1ae"><iframe lazy-loadable="true" src="https://www.youtube.com/embed/MwxyrLUdcss?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span><p>In this film by Oscar-winning director Louie Psihoyos, a team of activists expose the illegal trade of endangered species and document the global extinction crisis, which could result in the loss of half of all species. By using covert tactics and state-of-the-art technology, they take you to places where no one can go, uncover secrets and show you images you have never seen before.</p>
7. Virunga (2014)<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="6922c47a9603f24dd431f6e5282f7cb5"><iframe lazy-loadable="true" src="https://www.youtube.com/embed/wxXf2Vxj_EU?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span><p>Virunga National Park in the Democratic Republic of Congo is one of the only places in the world where you can still find wild mountain gorillas. But the park and its inhabitants are under attack from poachers, armed militias and companies wanting to exploit natural resources. This gripping doc follows a group of people trying to preserve the park and protect these magnificent great apes.</p>
8. Cowspiracy: The Sustainability Secret (2014)<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="9b7e7a93c26b3a3fc4f8a8374d98e2f2"><iframe lazy-loadable="true" src="https://www.youtube.com/embed/nV04zyfLyN4?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span><p>This crowdfunded documentary explores the impact of animal agriculture on the environment and investigates why the world's leading environmental organizations are too afraid to talk about it. The film has caused controversy by suggesting that animal agriculture is the primary source of environmental destruction and the main emitter of greenhouse gases, rather than fossil fuels.</p>
9. Years of Living Dangerously (2014)<span style="display:block;position:relative;padding-top:56.25%;" class="rm-shortcode" data-rm-shortcode-id="585f966df408ae57e3e31747a6c0a66b"><iframe lazy-loadable="true" src="https://www.youtube.com/embed/juXzfwvVHZQ?rel=0" width="100%" height="auto" frameborder="0" scrolling="no" style="position:absolute;top:0;left:0;width:100%;height:100%;"></iframe></span><p>In this Emmy-winning documentary series, celebrity correspondents travel the world to interview experts and scientists on the climate crisis and its effects. But rather than focusing on its star power, the two-season series also shines a spotlight on ordinary people affected by the climate crisis and shows how we can save our world for future generations.</p>
- 20 Instagram Accounts for Environmental Inspiration - EcoWatch ›
- Climate Champion David Attenborough Breaks Jennifer Anniston's ... ›
- 'My Octopus Teacher' Stuns Audiences, Reinforces Power of Nature ... ›
- 5 Must-Watch Documentaries for a More Sustainable Planet ... ›
EcoWatch Daily Newsletter
By Victoria Masterson
Using one of the world's problems to solve another is the philosophy behind a Norwegian start-up's mission to develop affordable housing from 100% recycled plastic.
Sustainable Homes<p>UN-Habitat says an <a href="https://unhabitat.org/un-habitat-aims-to-use-plastic-waste-to-support-housing-for-all" target="_blank">estimated 60% of people living in urban areas of Africa are in informal settlements</a>. At the same time, between 1990 and 2017, African countries imported around 230 metric tonnes of plastic, "which mostly ended up in dump sites creating a massive environmental challenge," the agency adds.</p><p>UN-Habitat deputy executive director, Victor Kisob, said the aim of the partnership with Othalo was to "promote adequate, sustainable and affordable housing for all."</p>
Artist's impression of an Othalo community, imagined by architect Julien De Smedt. Othalo<p>Othalo's process involves shredding plastic waste and mixing it with other elements, including non-flammable materials. Components are used to build up to four floors, with a home of 60 square metres using eight tons of recycled plastic. A factory with one production line can produce 2,800 housing units annually.</p><p>Following successful laboratory tests, Othalo's factory in Estonia has started producing components to build three demonstration homes for Kenya's capital, Nairobi; Yaoundé, the capital of Cameroon and Dakar, the capital of Senegal.</p><p>Othalo founder Frank Cato Lahti has been developing and testing the technology since 2016 in partnership with <a href="https://www.sintef.no/en/" target="_blank">SINTEF</a>, a 70-year-old independent research organization in Trondheim, Norway, and experts at Norway's <a href="https://en.uit.no/startsida" target="_blank" rel="noopener noreferrer">University of Tromsø</a>.</p>
Othalo founder Frank Cato Lahti. Othalo<p>Almost <a href="https://www.un.org/development/desa/publications/2018-revision-of-world-urbanization-prospects.html" target="_blank">seven out of every 10 people in the world are expected to live in urban areas by 2050</a>. More than 90% of this growth will take place in Africa, Asia, Latin America, and the Caribbean.</p><p>"In the absence of effective urban planning, the consequences of this rapid urbanization will be dramatic," UN-Habitat warns.</p><p>Lack of proper housing and growth of slums, inadequate and outdated infrastructure, escalating poverty and unemployment, and pollution and health issues, are just some of the effects.</p><p>Mindsets, policies, and approaches towards urbanization need to change for the growth of cities and urban areas to be turned into opportunities that will leave nobody behind, UN-Habitat says.</p>
Pioneers of Change<p>Reimagining cities and communities for greater resilience and sustainability was a key topic at the<a href="https://www.weforum.org/events/pioneers-of-change-summit-2020" target="_blank"> World Economic Forum's Pioneers of Change Summit 2020</a>.</p><p>The digital event brought together innovators and stakeholders from around the world to explore solutions to the challenges facing enterprises, governments and society.</p><p>Opening the summit, <a href="https://www.weforum.org/events/pioneers-of-change-summit-2020/sessions/opening-plenary-8f731cbc65" target="_blank">Stephan Mergenthaler, the Forum's Head of Strategic Intelligence and a member of the Executive Committee</a>, said: "We need to change the way we produce, the way we live and interact in our cities to make this transition to net-zero emissions a reality…</p><p>"And as this year has illustrated so dramatically, we need to make every effort that we keep populations healthy, if we want to avoid jeopardizing all this progress."</p><p><em>Reposted with permission from </em><em><a href="https://www.weforum.org/agenda/2020/11/un-africa-recycled-plastic-housing/" target="_blank">World Economic Forum</a>.</em><a href="https://www.ecowatch.com/r/entryeditor/2649069252#/" target="_self"></a></p>
- What Happens to Recycled Plastic? Researchers Lift the Lid ... ›
- This Eco-Village Is Being Built From More Than 1 Million Recycled ... ›
By Brett Wilkins
Despite acknowledging that the move would lead to an increase in the 500 million to one billion birds that die each year in the United States due to human activity, the Trump administration on Friday published a proposed industry-friendly relaxation of a century-old treaty that protects more than 1,000 avian species.
- Hundreds of Thousands of Migratory Birds 'Falling Out of the Sky' in ... ›
- Scientists at Work: Sloshing Through Marshes To See How Birds ... ›
Many people shop online for everything from clothes to appliances. If they do not like the product, they simply return it. But there's an environmental cost to returns.
- Are We Doomed If We Don't Curb Carbon Emissions by 2030 ... ›
- California Winery Cuts Carbon Emissions With Lighter Bottles ... ›
- Wealthy One Percent Are Producing More Carbon Emissions Than ... ›
By Dolf Gielen and Morgan Bazilian
John Kerry helped bring the world into the Paris climate agreement and expanded America's reputation as a climate leader. That reputation is now in tatters, and President-elect Joe Biden is asking Kerry to rebuild it again – this time as U.S. climate envoy.
Energy Is at the Center of the Climate Challenge<p>The <a href="https://science2017.globalchange.gov/chapter/1/" target="_blank">effects of climate change</a> are already evident across the globe, from <a href="https://theconversation.com/100-degrees-in-siberia-5-ways-the-extreme-arctic-heat-wave-follows-a-disturbing-pattern-141442" target="_blank">extreme heat waves</a> to <a href="https://science2017.globalchange.gov/chapter/12/" target="_blank">sea level rise</a>. But while the challenge is daunting, there is hope. Solar and wind power have become the <a href="https://www.irena.org/publications/2020/Jun/Renewable-Power-Costs-in-2019" target="_blank">cheapest forms of power generation globally</a>, and technology progress and innovation continue apace to support a transition to clean energy.</p><p>In the U.S. under a Biden administration, long-term national climate legislation will depend on who controls the Senate, and that won't be clear until after two run-off elections in Georgia in January.</p><p>But there is no shortage of <a href="https://www.bloomberg.com/features/2020-biden-climate-change-advice/" target="_blank">ideas for ways Biden</a> could still take action even if his proposals are blocked in Congress. For example, he could use executive orders and direct government agencies to tighten regulations on greenhouse gas emissions; increase research and development in clean energy technologies; and empower states to exceed national standards, <a href="https://www.reuters.com/article/us-autos-emissions-california/defying-trump-california-locks-in-vehicle-emission-deals-with-major-automakers-idUSKCN25D2CH" target="_blank" rel="noopener noreferrer">as California did in the past with auto emission standards</a>. A focus on a just and equitable transition for communities and people affected by the decline of fossil fuels will also be key to creating a sustainable transition.</p><p>The U.S. position as the world's largest oil and gas producer and consumer creates political challenges for any administration. U.S. forays into European energy security are often treated with suspicion. Recently, France blocked <a href="https://www.wsj.com/articles/frances-engie-backs-out-of-u-s-lng-deal-11604435609" target="_blank">a multi-billion dollar contract</a> to buy U.S. liquefied natural gas because of concerns about limited emissions regulations in Texas.</p><p>Strengthening cooperation and partnerships with like-minded countries will be critical to bring about a transition to cleaner energy as well as sustainability in agriculture, forestry, water and other sectors of the global economy.</p>
Creating a Global Sustainable Transition<p>How the world recovers from COVID-19's economic damage could help drive a lasting shift in the global energy mix.</p><p>Nearly one-third of Europe's US$2 trillion economic relief package <a href="https://www.bloomberg.com/news/articles/2020-07-21/eu-approves-biggest-green-stimulus-in-history-with-572-billion-plan" target="_blank" rel="noopener noreferrer">involves investments that are also good for the climate</a>. The European Union is also strengthening its 2030 climate targets, though each country's energy and climate plans will be critical for successfully implementing them. The <a href="https://joebiden.com/clean-energy/" target="_blank" rel="noopener noreferrer">Biden plan</a> – including a $2 trillion commitment to developing sustainable energy and infrastructure – is aligned with a global energy transition, but its implementation is also uncertain.</p><p>Once Biden takes office, Kerry will be joining ongoing <a href="https://www.un.org/en/conferences/energy2021/about#:%7E:text=The%20overarching%20goal%20of%20the,2030%20Agenda%20for%20Sustainable%20Development.&text=Accelerate%20delivery%20of%20United%20Nations,related%20issues%20at%20all%20levels." target="_blank" rel="noopener noreferrer">high-level discussions on the energy transition</a> at the U.N. General Assembly and other gatherings of international leaders. With the U.S. no longer obstructing work on climate issues, the G-7 and G-20 have more potential for progress on energy and climate.</p><p>Lots of technical details still need to be worked out, including international trade frameworks and standards that can help countries lower greenhouse gas emissions enough to keep global warming in check. <a href="https://www.carbonpricingleadership.org/what" target="_blank" rel="noopener noreferrer">Carbon pricing</a> and <a href="https://www.csis.org/analysis/how-can-europe-get-carbon-border-adjustment-right" target="_blank" rel="noopener noreferrer">carbon border adjustment taxes</a>, which create incentive for companies to reduce emissions, may be part of it. A consistent and comprehensive set of national energy transition plans will also be needed.</p><p>The global shift to <a href="https://www.irena.org/publications/2019/Jan/A-New-World-The-Geopolitics-of-the-Energy-Transformation" target="_blank">clean energy will also have geopolitical implications for countries and regions</a>, and this will have a profound impact on wider international relations. Kerry, with his experience as secretary of state in the Obama administration, and Biden's plan to make the climate envoy position part of the National Security Council, may help mend these relations. In doing so, the U.S. may again join the wider community of countries willing to lead.</p>
- 14 States On Track to Meet Paris Targets - EcoWatch ›
- Biden Vows to Ax Keystone XL if Elected - EcoWatch ›
- Biden Names John Kerry as First-Ever Climate Envoy - EcoWatch ›